Federal Regulations Governing Your Business

Your small business must comply with the numerous local, state and federal regulations. Avoid the temptation to ignore regulatory details. Doing so may avert some red tape in the short term, but could be an obstacle as your business grows.

Most businesses in North Carolian obtain one or more licenses or permits from local, state and federal agencies. The licenses or permits required will be determined by your type of business, its organizational structure, and location.

Federal Regulations

U.S. Dept of Labor, Wage and Hour Division www.dol.gov

Regulates working conditions, wages, and payment practices. 866-487-9243

Occupational Safety & Health Administration—(OSHA)

U.S. Dept. of Labor www.osha.gov

OSHA‘s mission is to save lives, prevent injuries and protect the health of America's workers. It establishes and enforces protective standards, and reaches out to employers and employees through technical assistance and free consultations to businesses that want to establish safety and health programs.

Region - 4 —Training Institute

The only OSHA Training facility in North Carolina is in Raleigh, NC. Experienced OSHA -approved instructors present up-to-date federal and state safety and health regulations via high-quality, standards-based training throughout the region, and online!

You must fill out an Immigration Form I-9 for each employee and keep it on file. Form I-9 can be downloaded from the Website at http://uscis.gov/graphics/formsfee/forms/i-9.htm 800-375-5283

U.S. Internal Revenue Service (IRS)

A new business owner must be aware of many Federal Tax obligations. The IRS has free publications, representatives to answer tax questions, and tax workshops to acquaint you with required registrations and tax obligations. The IRS free publication, “Tax Guide for Small Business (Publication 334) and the IRS CD-

ROM, ―The Small Business Resource Guide (Publication 3207) are good places to start. To order forms and publications: call 1-800-829-3676, or from the Internet: www.irs.gov.

SELF EMPLOYMENT TAX: Self-employment tax (SE Tax) is Social Security and Medicare tax primarily for individuals who work for themselves. If you have self-employment earnings of $400 or more, you are liable for paying self-employment tax and must attach a Schedule SE to your Form 1040 tax return. Social Security coverage provides retirement benefits, disability benefits, survivor benefits, and hospital insurance (Medicare) benefits.

EMPLOYER TAXES: If you have employees, you are required to withhold income tax, Social Security (FICA), be liable for the employer‘s portion of Social Security taxes and pay unemployment tax, under certain circumstances. Nonpayment of federal taxes can result in audits, penalties, difficulties obtaining bank financing and business closure.

ESTIMATED TAX: If you have earnings from self-employment and/ or other income upon which no withholding has been deducted, you need to make estimated tax payments every quarter in order to avoid penalties. For help, consult your business accountant or local IRS office.

INFORMATION RETURNS: If you pay an independent contractor more than $600 a year, issue payee statements by January 31st, and send Form 1099 and transmittal Form 1096 to the IRS by February 28th. If you pay employee wages, Form W -2 must be issued to your employees by January 31st, and W-2s must be sent to the IRS accompanied by transmittal Form W-3 by February 28th.

TAXPAYER ID/EMPLOYER IDENTIFICATION NUMBER (EIN):

You generally use your Social Security number as your taxpayer ID number, also known at your employer identification number (EIN). However, you must have an EIN if you (1) pay wages to one or more persons or (2) are liable for filing any pension or excise tax returns, including those for alcohol, tobacco or firearms.

To get an EIN, fill out a Form SS-4, available at your local IRS office, from the IRS Web site at www.irs.gov, or by calling 1-866-816-2065. If you need to apply for your 1st state Unemployment Insurance Number you can contact the NC Employmnet Security Commission or call them at 919-707-1150. You can also fax your Form SS-4 to 215-516-3990. If you ask for a reply by fax, you can get your EIN in about five workdays. Requests by mail usually take 5-6 weeks.

TAX QUESTIONS?

CALL: Call toll free (800) 829-1040 for general tax information.

U.S. Social Security Administration

(800) 772-1213 www.ssa.gov Nearly all employees, employers and self-employed persons are required to participate in the social security program. Employers are required to withhold a fixed percentage of employee wages, match each employee‘s contribution and make periodic deposits

to the IRS. Forms are available from the IRS. Self-employed

persons must also make contributions.

U.S. Department of Transportation (USDOT)

(360) 753-9875 www.dot.gov

Businesses in the trucking industry must contact the USDOT to obtain their USDOT number and Federal Highway Operating Authority (ICC) number